Amid reports of house hunters queuing for the release of new homes in Dublin 15, IPAV, the Institute of Professional Auctioneers & Valuers, said no one should have to queue in such a manner in the open air and overnight.
Pat Davitt Chief Executive of the organisation said: “A ticketing system should be introduced and house prices should be declared in advance.”
Mr Davitt said the issue “is a symptom of a severe lack of supply of homes.”
“The best available estimates show supply at less than half the level of demand, on a continuing basis over recent years. Demand is running at about 40,000 homes a year, every year,” he said.
There are still big impediments preventing builders and developers from building homes.
“There are planning issues and the cost of finance is still too high. In last year’s Budget, a €750 million loan fund for builders and developers was announced, something IPAV has proposed to the Government for several years now. This needs to be started immediately and money given to small builders who have planning on ready-to-go sites.
“We haven’t seen it in operation yet but the rate of interest charged to builders will be crucial,” he said pointing to the new first-time buyers Home Loan scheme introduced in February, with interest rates of 2% to 2.25%.
“That’s the kind of level that should be charged to builders also - to make building homes a viable proposition. Otherwise, you will see most housing built for rent by vulture funds and such like.
“The danger is, if SME builders continue to be forced out of the market vulture funds will gain a monopoly on the provision of housing and into the future could dictate prices,” he warned.
- Digital Desk